Dow Jones Rally As Schumer Pushes Debt Ceiling Amid This; Microsoft fills up on AI deals

The Dow Jones Industrial Average closed higher as Senate Majority Leader Chuck Schumer pushed for a debt ceiling deal. General dollar (DG) crater on earnings. Microsoft (MSFT) rose amid AI deal with startup backed by Nvidia (NVDA). Dell Technologies (DELL) was halted briefly after earnings were released during the session.




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Breakouts were few despite the encouraging action of the index. Cameco (CCJ) passed a handle entry while Celsius (CELH) has cleared a trend line. Pure storage (PSTG) broke above a buy point of 32.28.

The 10-year Treasury yield slipped 3 basis points to 3.61% while the two-year yield fell 5 basis points to 4.35%. Yields fell after Federal Reserve officials announced their intention to hold rates steady this month. The odds of a rate hike have been drastically reduced on the CME tool FedWatch.

Schumer pushes debt ceiling bill despite this issue

The House passed the debt ceiling bill Wednesday night, with most Republicans and Democrats backing the legislation.

But there was no time for a victory lap, as the measure must now clear the upper chamber. Schumer took a bullish tone.

“This is the best thing we can do right now for our economy and for American families,” the Democratic leader said. “I’m optimistic the Senate will get there, but it will take another concerted, focused, bipartisan push to get us across the finish line.”

But Republican Senator Lindsey Graham has threatened to block passage on defense spending.

“I’m tired of having a flaw over my head as a reason to neutralize the military at a time when we need it most,” Graham (RS.C.) said in the Senate.

GOP Senator Susan Collins of Maine was also unhappy with defense spending, which will be capped at $886 billion in 2024 and about $895 billion in 2025.

Others oppose aspects of the bill, including Utah Republican Mike Lee, Kentucky Republican Rand Paul and progressive Vermont Senator Bernie Sanders.

Nasdaq jumps as IBD 50 shines

The Nasdaq fared better than the other major indices, closing up 1.3%. Match (MTCH) was one of the best performers as it gained 10.2%, although it remains in a deep correction.

The benchmark S&P 500 index made a solid gain of 1%. NetApp (NTAP) shone here with an 8.5% increase.

The Nasdaq and S&P 500 both posted their highest close since August. However, volume was lower on both the NYSE and Nasdaq, according to early data.

S&P 500 sectors were almost all positive. Technology and industrials were the best performers. The defensive Consumer Staples and Utilities sectors were the only laggards.

Small caps also flexed their muscles, with the Russell 2000 jumping more than 1%. Growth stocks also had a seat at the party, with the Innovator IBD 50 (FFTY) ETF reversing higher to end the session up 1.4%.

Dow Jones Today: American Express, Apple Stock Lift Index

The Dow Jones managed to gain 153 points, or 0.5%.

American Express (AXP) fared best with an increase of 2.6%. Visa (V) is not far behind with a gain of 2.5%.

Apple (AAPL) rallied at the Dow’s close today as it posted a 1.6% gain. Apple posted its highest close since January 2022. The computer game is clear of all of its moving averages, according to MarketSmith analysis.

Microsoft Up Amid AI Deal with an Nvidia-Backed Startup

Fellow Dow Jones stock Microsoft rose amid news of another artificial intelligence deal. The software giant has signed a deal with CoreWeave that could be worth billions of dollars over several years, insiders have told CNBC.

Microsoft has to pay a huge sum for the startup’s Nvidia-backed cloud computing infrastructure.

The agreement will guarantee the Microsoft OpenAI partner, which operates ChatGPT, access to sufficient computing power.

Microsoft has already rolled out an improved ChatGPT version of its Bing search engine and is also bringing the technology to its Office suite.

Nvidia previously invested $100 million in CoreWeave. Microsoft and Nvidia are seen as two of the key players in the AI ​​push.

MSFT stock ended the session up 1.3% and is well extended. Nvidia fared even better, up 5.1%. Microsoft is up nearly 39% so far in 2023, while NVDA is up nearly 178% year-to-date.

Dollar General Earnings Sink Stock; Mixed Retailers

Dollar General went to the bears after a disastrous earnings report. DG stock fell 19.6%, making it the worst performer in the S&P 500 today.

Its gargantuan downward move in volume caused it to lose even more ground on the 50-day moving average.

It was a mixed day for retail stocks. Department store game Macy’s (M) reversed to the upside despite missing earnings estimates and downgrading its outlook. The stock closed highs but still rose 1.2%. It remains in a downtrend.

Stock from other department stores Nordström (JWN) surged after beating views and ending the session with a strong 4.7% increase.

Dell earnings release, action briefly halted

Dell stock was halted after the company appeared to release its earnings report early. His conference call takes place after the close.

The firm posted EPS of $1.31, down 29% but well off analysts’ views for 86 cents. Revenue fell 20% to $20.92 billion, but also topped views.

Computer hardware stock rose briefly before paring its gain to 1.5%. It is currently trading above its 50-day line but failed to retake its 21-day exponential moving average.


Futures: 7 Profit Movers After Tesla Tests; point of purchase; Jobs report looms


Outside of Dow Jones: These stocks are testing entries

There was surprisingly little breakout despite the strong upward momentum.

Cameco was able to clear a cup entry with a handle of 29.16 and remains in the buy range.

This is a second stage pattern, which still counts as an early stage. The volume was powerful in motion, a good sign. The uranium miner has a strong IBD composite rating of 93 out of 99. Revenue is expected to grow 113% in 2023.

Celsius managed to clear a short trendline near the 130 level. This would be an aggressive entry for the energy drink maker, which is a new member of the prestigious IBD rankings.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.

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